Gold Scheme Mistakes:
Gold saving schemes have become popular among people who cannot invest large amounts of money at once. These schemes allow customers to buy gold by paying small monthly installments. After the plan period, buyers can use the total amount to purchase jewelry or gold coins. However, before joining such schemes, it’s very important to know the risks involved.
Many people join schemes without reading the full terms. Each jewelry store has its own rules about refunds, processing fees, and delivery. Some even charge hidden fees. So, read every clause carefully before signing up.
Gold schemes are usually of two types — Fixed Rate and Open Rate. In a fixed rate plan, the gold price is locked each month, which protects you from future price hikes. In an open rate plan, the price is fixed only at the time of purchase. If gold rates rise, you may end up paying more. Choosing the wrong type can lead to loss.
Many jewelers attract customers with discounts on making charges or a free installment. But experts say these are short-term benefits. If gold prices increase sharply, your overall cost also goes up. So, don’t join just for small offers.
Once you join, the installment amount cannot be changed. If your financial situation changes, stopping the plan may cause loss. So, join only if you can make regular payments.
Gold schemes are suitable for people who want to buy jewelry slowly, not for investment. For long-term returns, digital gold, gold ETFs, or mutual funds are safer and more profitable options.
ALSO READ: Top 5 Warnings About Rising Gold Prices: Economist’s Big Alert!
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Top 5 Warnings About Rising Gold Prices: Economist’s Big Alert!
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